The concept actually dates back to the Middle Ages when Italian bankers realized that they could conduct their transactions without physical money. Rather than risk transporting gold coins across the countryside, medieval bankers merely annotated their ledgers with debit and credit entries.

They didn’t have computers, but it was the same concept – they kept track of transactions and balances on account ledgers, instead of with physical money.

This means that the ‘money’ in your savings account isn’t really yours. You don’t actually have any savings. What you really have is a claim on your bank’s savings. Your account is just an entry in the liability column of their digital ledger.

When you make a deposit, you’re trading your money for a banker’s promise to repay you. And there are countless regulations giving them the authority to break that promise. This is not a free system. And any rational person should consider keeping at least an emergency fund outside of this system.

That’s exactly the reason behind the war on cash by the Central Planners. To show how far they have come in this direction over the last few years:

France made cash transactions over €1,000 illegal, down from the previous limit of €3,000.

They want to eliminate hand-to-hand currency so that governments can document, control, and tax everything and everyone.

Deep State Nixon announces the end of the U.S. gold standard. Rothschild now wants to control the world currency with a renamed Dollar as SDR. In effect absconding the gold backed U.S. currency into a fully Deep State Controlled Currency called SDR or “USD Part Deux”. CLICK HERE TO ENLARGE

[I do not believe the East will go along with the IMF running the show using the SDR. I want to point out;… the IMF was originally a U.S. led creation whereby the U.S. had and has control via it’s veto power. How exactly does changing from one “paper” currency to another change anything? Only that the SDR becomes an “international reference point” to be settled between Central Banks. The dollar currently is more than 45% of what the SDR consists of, and is nothing more than another USDX index in my opinion. Moving to the SDR will and can change the “power” of those pulling the strings; to the extent of the number of gold related SDR’S each country accumulates at the IMF. The East fully knows the score relative to achieving a balance of power based on gold. ~ Bill Holter]

In the late 1960s, the IMF took this idea to the next level when they created their own digital currency for the exclusive use of governments and central banks. They’re called Special Drawing Rights (SDR). And even though the IMF’s balance sheet totals nearly 300 billion SDR – around $211 billion, not a single SDR exists in physical form.

The IMF is a club of bankers from all over the world who regulate the entire international monetary system.

All Central Banks decide how much of their currencies to create out of thin air, but the SDR in particular is an even greater scam; the entire reason it was created was because the IMF didn’t have enough real savings.

So they ‘solved’ the problem by creating a new digital currency that allowed them to easily raise money out of thin air.

But another scam is going on; the SDR is “supported” by the US Dollar, the Euro, the Pound, and the Yen, but all these currencies participate in the race to the bottom, and will finish with ZERO, which makes the SDR an outright fiasco! Economists criticize the World Bank and IMF

Xi Jinping & Vladimir Putin

[China’s 10% involvement is to expose the fact that the U.S. IMF Deep State has no gold in Fort Knox]

To be correct, today the world uses seven different reserve currencies that are held by central banks as a reserve. Attached chart shows all of the currencies that qualify for “reserve” status, and the percentages in which governments around the world hold them.

The U.S. dollar is, by far, the dominant reserve currency.

When most central banks hold money in a currency other than their own, they hold the biggest portion of that foreign money in U.S. dollars, a staggering 62%. On average they hold about 23%, in Euros, and about 4% each in Japanese Yen and British pounds.

The Swiss Franc, in fact too, is a reserve currency, but countries hold a paltry $17 Billion in Francs, not even enough to make up 1% of the total.

What are the identifiable factions in the negotiations towards a world government?

– The French, Germans and other European allies are pushing to make the IMF the most powerful instrument of their New World Order by inviting the Chinese to join them at the SDR table and thus replace the US dollar with something they control [a re-masked USD].

The problem with this is that the IMF has a horrific track record of raping, looting and impoverishing countries in order to benefit large corporations. Nobody wants an IMF world government except the RKM [Rothschild Khazarian Mafia] That owns and controls the IMF.

So to save the existing monetary system, is just replacing the US dollar as the reserve currency by the IMF SDR currency, and from thereon the dangers increase.

Deep State pipe dream -> Bitcoin [precursor] to the Cabal’s IMF SDR is presently being pumped up by the deep state banks with borrowed fiat currency from the Fed’s digital printing press. Beware! They hope their [Shock & Awe of bullshit] will somehow gain traction [by illusion] against non-fiat physical gold & silver where they simply have no control.

To ‘solve’ the massive world debt it would be very likely and possible to inflate the world debt away via a massive issuance of SDRs after China has joined the club.

[China’s motive is to expose to the world that the U.S. has no gold and that the SDR is nothing more than fiat like the USD. The talk about backing the SDR with gold is meaningless as there is no gold to back it with. If there were gold to back the SDR, it would need to be valued to around $750,000.00/ounce. Similarly For Bitcoin to be on par with gold it would need to be valued at $450,000.00]

Likewise what happened with the change from national currencies into the European currency the Euro, this time again the issuance of SDRs as world currency will be a massive dilution of former currencies, which only serve the powers that be, the Khazarians that won’t allow the implementation of a new gold standard, which is reducing away their power.

Moreover citizens are not allowed to own SDRs. Consequently their purchasing power shrinks while they don’t know whom to blame.

Elected officials don’t run the IMF, and the majority of the population doesn’t even know it plays a role in creation of inflation. They even can pretend that they have to save the world, as recently happened with the bailout for Greece.

The paper to gold ratio is close to 300 and is nothing more than a reflection of how desperate the banks are becoming to keep a lid on the price gold/silver.

The paper to underlying deliverable physical commodity ratio is many multiples beyond the ratio the CFTC (Commodity Futures Trading Commission) and CME (Chicago Mercantile Exchange) allow in any other commodity market.

It completely destroys the purpose of futures markets.

Gold futures were introduced in 1974; one year after the U.S. devalued the dollar vs. the yen and Paul Volker the Fed chairman at the time admitted 20 years later that the Fed made a mistake not preventing the price of gold from moving higher when the dollar was devalued.

In 1973 the price of gold couldn’t be manipulated, as gold futures didn’t exist.

The TRUTH about today’s heralded economic improvement. Here are four economic indicators that aren’t good for economic growth, and ending the recession.

1) Global economy is slowing:

The Baltic Dry Index (BDI) measures the price of shipping materials such as iron, coal, and grains. It accounts for 23 different shipping routes and four ship sizes. It’s one of the most closely watched indicators for the global economy. Last week, the BDI closed for the first time in 20-years below 500, at 498. It was the first time the index has closed below 500 in its twenty-year history. Since May 2008, when it reached its all-time high, it’s been falling 96% from that point ever since. It has fallen 59% since August alone.

Mærsk is the world’s largest shipping company. It moves about 15% of all manufactured goods shipped worldwide. If Mærsk is struggling, it’s because global trade is slowing, it reported a 15% drop in sales during the third quarter. That was the fourth quarter in a row that sales dropped from the previous year.

Its CEO, Nils Smedegaard Andersen, said he’s cutting jobs because the global economy is slowing faster than people think.

Iceland Islandsibanki ~ Bank Was Sold and proceeds given to Islanders.

“We believe that global growth is slowing down…Trade is currently significantly weaker than it normally would be under the growth forecasts we see.”

Last month, the International Monetary Fund cut its global GDP forecast from 3.3% to 3.1%. The organization also lowered its growth forecast for 2016 from 3.8% to 3.6%. According to Andersen, these new projections are still too optimistic.

The EU economy tanked, exports, the lifeblood of the EU economy, cratered. Manufacturing collapsed. Unemployment spiked. The tax revenues of EU nations that needed to make good on their debts were gravely threatened. – Worse: Germany, the economic power of the EU, was bombarded with a hailstorm of terrible news. – Deutsche Bank – Germany’s largest bank – reported multi-billion-dollar losses, and dismissed thousands of workers, and closed nearly a dozen offices around the world. – Volkswagen, Germany’s largest employer was caught up in on its own a fraudulent emission scandal, likely to cause tens of billions of dollars in losses. Unsurprisingly the powerful German economy, the ONLY economy capable of saving the EU, faltered and then slipped. Amazingly, ALL of this happened in the space of just a few weeks, starting as previously analyzed in the first week of October.

As over 90% of auto sales is financed, now the biggest subprime auto lenders are reporting that the credit quality of their “portfolios” is rapidly declining. They are on the rope for about one trillion euros. At the same time, lending to super-low-quality or “deep subprime” borrowers continues to grow. In other words, just like was seen at the beginning of the housing crisis in 2007, lenders continue to give money to “customers” with worse and worse credit rating, even while more and more of their existing borrowers have already stopped paying.

2) The coming derivative and bond bust will be the biggest crash in history:

Standard and Poor warned that Asia’s largest commodity trader Noble will be downgraded to junk status. Noble can be better thought of as Asia’s Glencore or Trafigura commodity derivatives on course of implosion. This looming downgrade of Noble Group is just the start of that process. Rumors are floating around that Deutsche Bank is linked to the derivatives at these companies, so it’s worthwhile watching these too. – With copper inching down to $2.00/lbs., last month Moody’s said that a fall below $2.20/lbs. copper was their threshold to downgrade Glencore’s credit rating!

Maloney blames a lot of today’s volatility on the Federal Reserve. He says:

“We’re going into the Bernanke bust. The 2008 global financial crisis was of Alan Greenspan’s making. Ben Bernanke just reacted to it. This time, it will be stocks, real estate and bonds. So, this is going to be the biggest crash in history. This bond market bubble is something that has been constantly inflated for the past 35 years. When it pops, it’s going to be devastating. A bond bubble bursting is deflationary.”

Where does that leave gold and silver? Maloney says,

“In the last great deflation, which was well studied, the Great Depression, gold rose 70%… If you owned gold, you ended up with two and a half times more purchasing power… One of the few assets that actually did well in the last great deflation was gold.” Watch video here.

3) Interest rates a fraud:

When history looks back on this current period, than is seen that one of the biggest official frauds is the Fed’s empty threat of raising interest rates, and the world will understand how and why it was used to help keep a lid on precious metals.

Interest rates, should be set by actual demand for capital. This demand ought to create interest rates that encourage thrift, economy, and savings. These interest rates would act as a brake on reckless speculation, forcing entrepreneurs and large businesses to consider what new projects are worthwhile.

When the suffering of careful saving does not create capital, and when entrepreneurs pay essentially no cost to gamble, mal-investments are created that distorts the markets, and only can be resolved through a crack up boom.

Sound policies might spur economic activity, but lower interest rates don’t necessarily create bona fide economic growth or actual wealth. By messing around with the most important price in all of capitalism – the price of capital itself, Central Banksters deliberately short-circuited the flow of information between consumers and producers and between borrowers and savers. Changing the price system does changing the behaviour, because it is changing the information about incentives that people receive. And that rarely works out in the long run. And remember, central banks only tell what people want to hear.

“Increasing the money supply is inflation. A hyperbolic increase in the money supply is BY DEFINITION “hyperinflation”. The Federal Reserve has already hyper inflated the US Dollar; It’s a past tense. Nothing can prevent it, it’s already been done.” – says Jeff Nielson.

Don’t Believe Banksters’ Lies – Own Physical Gold And Silver. People have used gold as money for thousands of years. It has protected wealth through every kind of financial crisis imaginable. It can do the same thing again when the next crisis hits. This is why every savor should own physical gold. It’s the first step to safeguard your wealth.

4) The Fed Has Already HYPER INFLATED The Dollar

Jeff Nielson discusses absurd jobs report and the hard-core reality about the US debt ceiling, the Dollar and hyperinflation:

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Huggin & Munnin

Unconstitutional Powers By Repetition

Usurpations by one branch of government, of powers entrusted to a coequal branch, are not rendered constitutional by repetition.

The United States Supreme Court held unconstitutional hundreds of laws enacted by Congress over the course of five decades that included a legislative veto of executive actions in INS v. Chada, 462 U.S. 919 (1982).

Executive Links

Constitutional Republic Of The United States

True Federalism.

“The way to have good and safe government is not to trust it all to one, but to divide it among the many, distributing to every one exactly the functions he is competent to.

Let the national government be entrusted with the defense of the nation, and its foreign and federal relations; the State governments with the civil rights, law, police, and administration of what concerns the State generally; the counties with the local concerns of the counties, and each ward direct the interests within itself.

It is by dividing and subdividing these republics from the great national one down through all its subordinations, until it ends in the administration of every man’s farm by himself; by placing under every one what his own eye may superintend, that all will be done for the best.

What has destroyed liberty and the rights of man in every government which has ever existed under the sun? The generalizing and concentrating all cares and powers into one body.”